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Decentralising climate finance: insights from Kenya and Ethiopia

This paper explores different mechanisms for delivering climate finance at the local level. It focuses on the experiences of a national climate fund – the Climate Resilient Green Economy (CRGE) facility in Ethiopia – and a sub-national source – the County Climate Change Funds (CCCFs) in Kenya. The paper aims to understand how well these funds take into account the priorities of local communities alongside recognising and incorporating national climate change policies and development plans.

The novelty of the paper lies in understanding the implications of who takes the decisions, in the investment prioritisation process and at what level of jurisdiction, along with how those decisions are taken. This leads us to discuss and interrogate the appropriate levels of decision-making for decentralising climate finance.